The way I do it is I put some on the center of the chip like in the first pic. I then take a peice of cardboard, the kind like off a greeting card. Rip a small peice and I use that to spread the paste over the entire top of the chip. All you want to do is just lightly cover the chip with the paste.
First clean the surface by removing the old paste. Use rubbing alcohol to clean it and shine it up.
Next put a dap of paste in the middle of the chip.
Then spread it around and evenly coat the entire surface. You only need a thin amount.
Last you just need to put the heatsink on and your good to go.